Lowe's Profit Soars on Lower Costs

Investors rejoiced as Lowe's Cos. reported a 76% earnings increase for the fiscal third quarter, suggesting its work transforming product assortment may be paying off.

Lowe's has been reshaping its operations to better compete with bigger rival Home Depot Inc., which has beaten Lowe's same-store sales performance for years. The No. 2 chain has been shifting to an everyday-low-price strategy and is reviewing all its product lines with...